Strengthening Emission Carbon Disclosure in Increasing Firm Value

Strengthening Emission Carbon Disclosure in Increasing Firm Value

Muhammad Wahyuddin Abdullah¹, Hamka², Namla Elfa Syariati³, Saiful Muchlis⁴, Farid Fajrin⁵, Hadriana Hanafie⁶

^1,2,3,4,5Accounting Department, Alauddin State Islamic University of Makassar

⁶Wira Bhakti University of Makassar

Publication Information

Journal Title: International Journal of Research and Innovation in Social Science (IJRISS)
Author(s): Abdullah, Muhammad Wahyuddin ; Hamka ;Syariati, Namla Elfa ; Muchlis, Saiful ;Fajrin, Farid ;Hanafie, Hadriana
Published On: 08/05/2025
Volume: 9
Issue: 4
First Page: 1411
Last Page: 1431
ISSN: 2454-6186

• Cite this Article Abdullah, Muhammad Wahyuddin ; Hamka ;Syariati, Namla Elfa ; Muchlis, Saiful ;Fajrin, Farid ;Hanafie, Hadriana ; Strengthening Emission Carbon Disclosure in Increasing Firm Value, Volume 9 Issue 4, International Journal of Research and Innovation in Social Science (IJRISS),1411-1431, Published on 08/05/2025, Available at https://rsisinternational.org/journals/ijrsi/articles/strengthening-emission-carbon-disclosure-in-increasing-firm-value/

Abstract

This study employs quantitative methodology with a causal comparative design to investigate how green accounting, financial performance, and environmental performance influence firm value, while also examining carbon emission disclosure as a moderating variable in these relationships. The research population comprises mining companies listed on the Indonesia Stock Exchange during 2019-2023, with 16 companies selected through purposive sampling, yielding 80 total observations. Data collection relies on secondary sources, specifically sustainability and annual reports from these mining companies. The analytical approach combines multiple linear regression with Moderated Regression Analysis (MRA) or interaction testing to examine the proposed relationships.

The results show that firm value is unaffected by financial performance or green accounting. Firm value is impacted by environmental performance. Carbon emission dislosure has not been shown to mitigate the impact of firm value on financial performance. It has been demonstrated that the impact of environmental performance and green accounting on firm value is mitigated by carbon emission disclosure. The study’s implications can broaden our understanding of environmental reporting and carbon emission disclosure in relation to a company’s environmental sustainability, and stock market conclusions are based on companies that receive positive signals from investors. The study’s findings may encourage business to reveal carbon emissions and stress the benefit of environmental preservation in order to boost their perceived worth to stakeholders and investors.

Keywords: Green Accounting, Financial Performance, Environmental Performance, Firm Value, Carbon Emission Disclosure